Acquisition and Partnerships - Knightscope completed the acquisition of Case Emergency Systems in 2022, enhancing its K1B emergency communication device portfolio with nearly 10,000 installed devices across the USA[23]. - The company has partnered with Konica Minolta, Inc. to train technicians for servicing and maintaining its machines, aiding in nationwide scaling efforts[64]. - The company completed the acquisition of substantially all assets of Case Emergency Systems in October 2022, expanding its emergency call box and communications business[217]. Product Offerings and Technology - The K5 ASR is designed for outdoor use and can autonomously navigate environments such as open-air malls and corporate campuses, while the K3 ASR is tailored for complex indoor environments[33][34]. - Knightscope's ASRs and K1B technologies are marketed under a Machine-as-a-Service (MaaS) business model, which includes maintenance, service, support, and unlimited software upgrades[28]. - Knightscope's technologies include fully autonomous security robots and blue light emergency communication systems, aimed at enhancing public safety[214]. - The newly released Knightscope Emergency Communication System (KEMS) platform offers self-diagnostic capabilities and real-time monitoring for operational status[219]. - Knightscope's autonomous security robots (ASRs) provide real-time data collection and analysis, enhancing situational awareness for security teams[216]. - The company's emergency communication devices (ECDs) include the K1 Blue Light Tower, E-Phone, and K1 Call Box, designed for reliable communication in various environments[217]. - Knightscope's technologies are manufactured in the USA, supporting its mission to enhance safety across the country[215]. Financial Performance and Position - The company incurred a net loss of $22.1 million for the year ended December 31, 2023, compared to a net loss of $25.6 million for the year ended December 31, 2022, resulting in an accumulated deficit of $161.5 million[80]. - Cash and cash equivalents on hand were $2.3 million as of December 31, 2023, down from $4.8 million as of December 31, 2022[80]. - As of December 31, 2023, the company had outstanding orders representing approximately $3.4 million, with $2.3 million for ASR deployments and $1.1 million for K1B orders[72]. - The company projects operating losses and negative cash flows for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[156]. - The company has issued unsecured Public Safety Infrastructure Bonds totaling approximately $4.2 million, bearing interest at 10% per annum, starting December 31, 2024[107]. - The company has not paid any cash dividends on its Class A Common Stock and does not anticipate doing so in the foreseeable future, limiting returns on investment to stock price appreciation[161]. Market and Competition - The market for advanced physical security technology is characterized by rapid change and intense competition, making it difficult for the company to predict future operating results[93]. - The company is not aware of any direct competitors for its ASR products in the advanced physical security technology space[66]. - The private security industry is undergoing structural changes, and the company faces increased competition that may affect pricing and market share[143]. - The company is aware of competition from other firms developing physical security technology, which may have more resources[116]. Regulatory and Compliance Risks - The company’s ability to operate is dependent on compliance with evolving privacy laws, which could impact its business operations[118]. - The California Consumer Privacy Act (CCPA) imposes requirements on businesses processing personal information of California residents, with potential fines for noncompliance[120]. - The EU General Data Protection Regulation (GDPR) imposes fines of up to €20 million or 4% of annual global revenue for noncompliance, affecting the company's operations in the EU[123]. - The UK GDPR imposes similar obligations as the GDPR, with fines of up to £17.5 million or 4% of global annual revenue for noncompliance[124]. - The company may be impacted by new AI regulations expected to enter into force in the US and EU in 2024, which could affect its ability to develop and commercialize AI technologies[126]. - The EU AI Act establishes a governance framework for AI, with potential fines of up to 7% of worldwide annual turnover for breaches[128]. Operational Challenges - The company faces challenges in managing growth, including the need to improve operational and financial processes as it expands[105]. - The company has identified material weaknesses in internal control over financial reporting, which could result in restatements and loss of investor confidence[142]. - The company is dependent on the global supply chain, and ongoing constraints may impact its ability to meet increased demand and affect net sales revenues[150]. - The company has experienced supply chain constraints due to the COVID-19 pandemic and the ongoing conflict in Ukraine, impacting production and deployment of ASRs[150]. - Increased costs of components and shipping have resulted from supply chain issues, which may negatively affect the company's financial condition and operating results[150]. Management and Governance - The company’s executive team includes experienced professionals, such as William Santana Li, who has over 30 years of experience in the automotive sector[194]. - Apoorv S. Dwivedi has been appointed as the Chief Financial Officer as of January 2024, bringing experience from Nxu, Inc. and Cox Automotive[196]. - Changes in the board of directors may create uncertainty among investors and affect the company's future direction and performance[112]. - The company has not developed a succession plan for key management personnel, which could harm operations if key members are unavailable[111]. Cybersecurity and IT Risks - The company has developed a cybersecurity risk management program based on the FedRAMP framework to protect critical systems and information[182]. - The company has a cybersecurity incident response plan that includes procedures for responding to incidents[191]. - The company’s management team is responsible for monitoring systems for vulnerabilities and implementing necessary updates[188]. - The company has not identified any known cybersecurity threats that have materially affected its operations or financial condition[184]. - The company’s operations may be affected by information technology system failures and cybersecurity threats, which could compromise confidential information[131]. Stock and Shareholder Matters - Knightscope's Class A Common Stock is traded on The Nasdaq Capital Market under the symbol "KSCP," with 14,207 holders of record as of March 28, 2024[206]. - The Company has until April 23, 2024, to regain compliance with the Minimum Bid Price Requirement, with a potential extension of an additional 180 days if certain conditions are met[153]. - The company received a notice from Nasdaq regarding noncompliance with the Minimum Bid Price Requirement, as its Class A Common Stock has been below $1.00 per share for 31 consecutive business days[152]. - As of March 29, 2024, holders of Super Voting Stock control approximately 27.8% of the company's total voting rights, allowing them significant influence over management decisions[148]. - The Company is currently authorized to issue 114 million shares of Class A common stock and is seeking to increase this to 228 million shares, which is crucial for financing activities[157]. - Future debt financing may impose additional restrictive covenants, making it more challenging to obtain capital and pursue business opportunities[158]. - The market price of the Company's Class A Common Stock may be highly volatile, influenced by various factors including sales cycles and competition[159]. - The Company may need to issue additional securities to raise capital, which could significantly dilute existing shareholders[170]. Environmental, Social, and Governance (ESG) Considerations - Increasing scrutiny on environmental, social, and governance (ESG) initiatives may lead to higher costs and impact the Company's reputation[173]. - The company is subject to increasing levels of regulation regarding ESG matters, which may lead to higher compliance costs[177].

Revenue Generation and Business Model - Knightscope has generated over $30 million in lifetime revenue during its large-scale proof-of-concept phase and is now scaling up across the country[10]. - The Machine-as-a-Service (MaaS) business model offers subscriptions at an effective price of approximately $0.75 to $9 per hour, providing a recurring revenue stream[25]. - Knightscope's ASRs can generate approximately $255,000 of revenue over a five-year period, with a margin of 67% based on internal targets[31]. - The recurring revenue business model is anticipated to continue growing, addressing societal issues related to crime and terrorism[43]. - The company has generated over $30 million in lifetime revenue and has shown consistent double-digit growth over the last 3 years[43]. Market Potential and Client Focus - The total potential market for annual recurring revenue in the U.S. is estimated at approximately $4.1 billion, with a near-term opportunity for around 36,000 robots[19]. - The company is focused on acquiring B2G clients, including law enforcement agencies and the U.S. Federal Government, in addition to its B2B client base[9]. - The estimated negative economic impact of crime in the U.S. exceeds $2 trillion annually, highlighting the need for advanced public safety technologies[7]. Technology and Product Development - Knightscope's Autonomous Security Robots (ASRs) generate over 90 terabytes of data annually, which is utilized through the Knightscope Security Operations Center (KSOC) user interface[13]. - Production ramp-up is planned for the all-new K1 Hemisphere and the 5th generation K5, alongside development of the K7 ASR and AI-driven Mission Control software[47]. - The strategy includes a wide portfolio of autonomous products that can operate in various environments to enhance safety[48]. Growth and Profitability Goals - The company aims to achieve profitability by Q4 2024 through improved revenue strategies and reduced variable costs[46]. - The number of machines-in-network is planned to exceed 10,000 during 2024, with a focus on improving manufacturing throughput[44]. - The company anticipates growth in near- and long-term revenue goals, although specific figures were not disclosed[68]. Financial Position and Strategic Plans - The cash position is expected to improve in 2024 by delivering on a multi-million dollar backlog of new orders and closing on the first bond offering[45]. - The company plans to reduce its facility footprint nationwide from 13 to 1 over time to lower fixed costs[46]. - Knightscope's financial results include forward-looking statements regarding revenue opportunities and profitability[68]. Regulatory and Compliance - The company has received an Authority to Operate (ATO) from the U.S. Federal Government after a three-year cybersecurity review, positioning it for federal contracts[11][33]. - Risks and uncertainties that could affect actual results are discussed in Knightscope's Annual Report on Form 10-K for the year ended December 31, 2022[68]. Commitment to Manufacturing and Social Impact - The company is committed to maintaining a "Made in the USA" focus in its manufacturing efforts[44]. - Knightscope's technology has been proven effective, with clients reporting significant reductions in crime rates after deploying ASRs[23]. - The company seeks to grow both organically and through acquisitions, targeting strategic partnerships to enhance its technological offerings[49].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41248 Knightscope, Inc. (Exact name of registrant as specified in its charter) Delaware 46-2482575 (State ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41248 Knightscope, Inc. (Exact name of registrant as specified in its charter) Delaware 46-2482575 (State or o ...

Table of Contents EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller repo ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period From To Commission file number: 001-41248 KNIGHTSCOPE, INC. (Exact name of registrant as specified in its charter) Indicate by check mark whether the registrant ...

Table of Contents | | UNITED STATES | | | --- | --- | --- | | | SECURITIES AND EXCHANGE COMMISSION | | | | Washington, D.C. 20549 | | | | FORM 10-Q | | | (Mark One) | | | | ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES | | | | EXCHANGE ACT OF 1934 | | | | For the quarterly period ended June 30, 2022 | | | | or | | | ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES | | | | EXCHANGE ACT OF 1934 | | | | For the transition period from to | | | | Commission File Nu ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41248 Knightscope, Inc. (Exact name of registrant as specified in its charter) Delaware 46-2482575 (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period From To Commission file number: 001-41248 KNIGHTSCOPE, INC. (Exact name of registrant as specified in its charter) | Delaware | 46-2482575 | | --- | --- | | (Sta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 024-11680 Knightscope, Inc. (Exact name of registrant as specified in its charter) Delaware 46-2482575 (State or other jurisdic ...